In August, President Biden released plans for student loan forgiveness. Under this plan, borrowers who earn less than $125,000 a year ($250,000 for married couples) will be eligible for $10,000 forgiveness on federal loans, or $20,000 if they are recipients of the Bill Grant program.
In addition, the Department of Education told borrowers who took out privately owned federal student loans, such as Federal Family Education Loans and Perkins Loans, that their debts could qualify for forgiveness if combined into direct loans.
Here’s the point. While no deadline for the merger was initially set, management announced too late for most people that the deadline for the merger was September 29, 2022. This shocking news leaves 770,000 borrowers (Opens in a new tab) affected. If you are left in trouble with this decision, Here are ways you can pay off student debt (Opens in a new tab) as soon as possible. You may also qualify for other forms of loan forgiveness (Opens in a new tab).
The loan forgiveness requests were due to be issued in early October, but have since been delayed until at least October 17. Once applications are submitted, borrowers are encouraged to apply by November 15 in order to complete the waiver before payments resume in January. You can subscribe to app notifications by going to https://www.ed.gov/subscriptions (Opens in a new tab).
Not sure whether or not you will be affected by this decision? First, you’ll need to check your income to determine if you’re above the threshold: $125,000 per year for singles or $250,000 for married couples. This can easily be done by checking your tax returns for 2020 and 2021.
If you find that your income qualifies you for the forgiveness, then you will want to confirm the type of loans you took out. You can either contact the loan service or go to studentaid.gov to find out this information. Keep in mind that this program only applies to loans obtained before June 30, 2022.
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